Renting vs. Owning in Tempe: What You’ll Pay
When comparing the cost of living in an apartment vs house in Tempe, the first factor to consider is monthly housing costs. According to Zumper, the average rent for a 2-bedroom apartment in Tempe is $1,695 per month as of April 2023. In contrast, the average rent for a 3-bedroom house in Tempe is $2,400 per month. Buying a home involves additional costs like a down payment, closing costs, and property taxes and HOA fees.
While rent is the biggest line item, it’s important to factor in the full range of monthly expenses when deciding between an apartment and a house in Tempe. Utilities, maintenance, and lifestyle considerations can add up to significant cost differences over time.
Cost Comparison – Apartment vs House
Here’s a side-by-side breakdown of common monthly costs in Tempe:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage* | $1,695 | $2,400 |
| Electricity | $120 | $180 |
| Water/Sewer | Included | $90 |
| Internet | $60 | $70 |
| Renters/Homeowners Insurance | $15 | $100 |
| Maintenance/Repairs | $0 | $150 |
| HOA Fees | $0 | $50 |
| Total | $1,890 | $3,040 |
*Mortgage based on 5% down, 6% interest, 30-year fixed loan. Estimates are for mid-range units with typical usage.
As the table shows, renting an apartment in Tempe tends to be significantly cheaper on a monthly basis compared to owning or renting a house. Apartments often include some utilities and require less upkeep, while houses come with separate bills and maintenance costs that can add over $1,000 to the monthly total.
Utility and Upkeep Differences
In addition to higher base rents, houses in Tempe typically have larger utility loads than apartments:
- More square footage means higher electricity and gas bills for heating/cooling
- Water is often an additional charge, while many apartments include it
- Houses with yards require water for landscaping and lawn maintenance
- Older homes may have less efficient appliances and insulation
Upkeep is another cost factor. Apartments generally include all maintenance and repairs in the rent. Homeowners are responsible for servicing HVAC, plumbing, and appliances, along with costs like pest control, painting, and yardwork. Even minor repairs can cost hundreds of dollars.
Lifestyle Tradeoffs
Cost isn’t the only consideration when choosing between an apartment and a house in Tempe. Lifestyle fit is equally important. Many Tempe residents choose apartments for walkability, while families prefer houses for yard space.
Apartments offer perks like swimming pools, fitness centers, and social events. They tend to be located in more central, walkable areas near dining and entertainment. However, apartments have less space, more noise from neighbors, and often charge extra fees for parking or pets.
Houses provide more privacy, storage, and room to spread out. They often have private outdoor space for kids, pets, and entertaining. However, they may be farther from city amenities, requiring a longer commute. Parking and yardwork also become the renter/owner’s responsibility.
Which Is Cheaper Long Term in Tempe?
While renting an apartment is cheaper on a monthly basis, owning a home can be more cost-effective long term. Assuming a 2BR apartment rent of $1,695 and 5% annual increases, total rent over 5 years would be $111,205. In contrast, total costs for owning a $400K home (including mortgage, taxes, insurance, maintenance, selling costs) would be around $99,900 over 5 years after accounting for appreciation.
Of course, this calculation depends heavily on the specific home price, interest rates, and market conditions. Renting may be the better choice for those who value flexibility and predictable costs. Carefully evaluate your budget, lifestyle, and long-term goals using tools like this monthly budget calculator for Tempe.
FAQs About Housing Costs in Tempe
How much more does a house cost per month?
On average, renting a house in Tempe costs about $700 more per month than renting an apartment when accounting for additional utilities and upkeep. Owning a house has even higher monthly costs due to taxes, insurance, and maintenance.
Do houses come with higher utility bills?
Yes, houses in Tempe tend to have higher utility costs than apartments. Larger floor plans, older systems, and yard watering all contribute to higher bills for electricity, gas, and water.
Are apartments cheaper even with pet fees?
While many Tempe apartments charge pet rent or deposits, the monthly fees are usually much less than the added utility and maintenance costs of a house. For most pet owners, an apartment will still be cheaper overall than a rental home.
Making the Right Housing Choice in Tempe
When comparing the cost of living in an apartment vs house in Tempe, apartments offer significant savings on monthly expenses. Expect to pay around $1,150 less per month on rent, utilities, and upkeep combined. Houses provide more space and privacy but come with higher carrying costs and time spent on maintenance.
Ultimately, the right choice depends on your budget, family size, and lifestyle priorities. Be sure to consider the full picture of monthly costs, long-term goals, and quality of life as you evaluate housing options in Tempe.